The local Jabal Omar Development Company has cancelled a $426m contract awarded to the local Ruwad Civil Construction for the fifth phase of the Jabal Omar development in Mecca.

The cancellation was released on the Saudi Stock Exchange (Tawadul). It is unclear why the deal was cancelled, with both parties refusing to comment on the developments.

Ruwad Civil Construction was awarded the contract in July. The work involved the building of nine hotel buildings and all related infrastructure work.

Ruwad Civil Construction is currently working on the fourth phase of the development.

The Jabal Omar development is a 2.5 million-square-metre project located near the Grand Mosque in Mecca. The development will include 37 towers, including hospitality, residential, retail, commercial and religious facilities. Upon completion, it will accommodate 30,000-40,000 residents and will be able to handle 8 million pilgrims walking to the mosque from the project’s residential and hotel zones, as well as surrounding areas.